Q1 2023 Planet Labs PBC Earnings Call

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Speaker 1: Good afternoon and thank you for attending today's Planet Labs PBC first quarter of fiscal 2023 earnings call. My name is Jason and I'll be the moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you'd like to ask a question, please press star one on your telephone keypad. I would now like to pass the conference over to our host, Chris Ginaldi, Vice President of investor relations investor relations.

Good afternoon, and thank you for attending today's planet Labs, PBC first quarter of fiscal 2023 earnings call. My name is Jason and I'll be the moderator for todays call all lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end if you'd like to ask a quest.

Can you. Please press star one on your telephone keypad.

I'd now like to pass the conference over to our host Kris Jenner Aldi, Vice President of Investor Relations Investor Relations.

Speaker 1: Hello, and welcome to Planet's first quarter of Fiscal Year 2023 earnings call. Before we begin today's call, we'd like to remind everyone that we may make forward-looking statements related to future events or our financial outlook.

Hello, and welcome to planets first quarter of fiscal year 2023 earnings call.

Before we begin today's call we'd like to remind everyone that we may make forward looking statements related to future events or our financial outlook.

Speaker 1: Any forward-looking statements are based on management's current outlook, plans, estimates, expectations, and projections. The inclusion of such forward-looking information should not be regarded as a representation by Planet that future plans, estimates, or expectations will be achieved.

Any forward looking statements are based on management's current outlook plans estimates expectations and projections. The inclusion of such forward looking information should not be regarded as a representation by planet the future plans estimates or expectations will be achieved.

Speaker 1: Such forward-looking statements are subject to various risks and uncertainties and assumptions as detailed in our SEC filings, which can be found at www.SEC.gov.

Such forward looking statements are subject to various risks and uncertainties and assumptions as detailed in our SEC filings, which can be found at www dot FCC dot Gov.

Speaker 1: Our actual results or performance may differ materially from those indicated by such forward-looking statements. And we undertake no responsibility to update such forward-looking statements to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

Our actual results or performance may differ materially from those indicated by such forward looking statements and we undertake no responsibility to update such forward looking statements to reflect events or circumstances. After the date on which the statement is made or to reflect the occurrence of unanticipated events.

Speaker 1: During the call, we will also discuss non-GAAP financial measures. We use these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period to period comparisons.

During the call. We will also discuss non-GAAP financial measures. We use these non-GAAP financial measures for financial and operational decision, making and as a means to evaluate period to period comparisons. We believe that these measures provide useful information about operating results enhance the overall understanding of past financial performance.

Speaker 1: We believe that these measures provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making.

And future prospects and allow for greater transparency with respect to key metrics used by management in its financial and operational decision, making for more information on the non-GAAP financial measures. Please see the reconciliation tables provided in our press release issued earlier this afternoon.

Speaker 1: For more information on the non-GAAP financial measures, please see the reconciliation tables provided in our press release issued earlier this afternoon.

Speaker 1: Further, throughout this call, we provide a number of key performance indicators used by management and often used by competitors in our industry.

Further throughout this call we provide a number of key performance indicators used by management and often used by competitors in our industry.

Speaker 1: These and other key performance indicators are discussed in more detail in our press release.

These and other key performance indicators are discussed in more detail in our press release.

Speaker 1: On today's call, we will also be discussing our backlog of contracted revenue. Although our backlog reflects business that our management considers to be firm, please note it is also a forward-looking metric, and any termination, amendment, or cancellation of contracts or awards may occur, which could result in a reduction in our backlog.

On today's call. We will also be discussing our backlog of contracted revenue.

Although our backlog reflects business that our management considers to be firm. Please note. It is also a forward looking metric in any termination amendment or cancellation of contracts or awards may occur, which could result in a reduction in our backlog.

Speaker 1: Before you jump in, I'd like to encourage everyone to reference the slides we have posted on our Investor Relations website, which are intended to accompany our prepared remarks.

Before you jump in I'd like to encourage everyone to have referenced the slides we have posted on our Investor Relations website, which are intended to accompany our prepared remarks.

Speaker 1: At this time, I'd now like to turn the call over to Will Marshall, Planet's CEO , Chairperson, and Co-Founder. Over to you, Will.

At this time I would now like to turn the call over to well Marshall Planet C E O chairperson and co founder.

Over to you will.

Speaker 2: Thanks, Chris, and hello, everyone. I'm excited to share with you our results for the first quarter of fiscal 2023, including some additional detail on recent announcements, our outlook for the business, and some perspective on the growing demand for our data. Starting with a quick summary of our Q1 results, these were strong across the board.

Thanks, Chris and Hello, everyone.

I'm excited to share with you I was out for the first quarter of fiscal 2023.

Including some additional detail on recent announcements on our outlook for the business and some perspective on the growing demand for our data.

Starting with a quick summary of our Q1 results. These were strong across the board.

Speaker 2: We achieved $40.1 million in revenue, which represents a 26% year-over-year growth and continued acceleration of our top line.

We achieved $40.1 million in revenue, which represents a 26% year over year growth and continued acceleration of our top line.

Speaker 2: We expanded the first quarter non-gap gross margins to 45%, up from 41% a year ago, a significant uptick, continuing our progression towards SAS-like margins.

We expanded first quarter non-GAAP gross margins to 45% up from 41% a year ago, a significant uptake continuing to put a progression towards SaaS like margins were.

Speaker 2: We also added a diverse group of customers to the business and ended the quarter with 826 unique customers.

We also added a diverse group of customers to the business and ended the quarter with 826 unique customers.

Speaker 2: In short, I'm incredibly proud of the superb execution of our teams during the quarter. And as you'll hear from Ashley shortly, we expect this momentum to continue throughout the fiscal year 2020.

And so I'm incredibly proud of the superb execution of our teams during the quarter and as you'll hear from Ashley. Shortly we expect this momentum to continue throughout the fiscal year 2023.

Speaker 2: As we shared on our prior call, we're seeing significant demand for our data across government and commercial markets, which we believe has accelerated in part due to recent global events as well as broad secular trends. Pallant's data subscription business addresses many critical challenges faced by companies and countries around the globe, as climate change and geopolitical security remain on centre stage.

As we said on our prior call, we're seeing significant demand for our data across government and commercial markets, which we believe has accelerated impart due to recent global events as well as broad secular trends tenants.

Tenants data subscription business addresses many critical challenges faced by companies and countries around the globe as climate change and geopolitical security remain on center stage.

Speaker 2: Rising concerns around global food security touched two of our top vertical markets, agriculture and defense and intelligence. And in general, sustainability and security are increasingly intertwined, driving demand in other key markets including civil government, energy and finance.

Rising concerns around global food security touched two of our top vertical markets, agriculture, and defense and intelligence and in general sustainability and security are increasingly intertwined.

Driving demand in other key markets, including civil government energy and finance.

Speaker 2: Planet's data is enabling better decision making and outcomes for customers in crucial areas, whether increasing profitability in commercial segments or meeting critical security and policy objectives in government. During Q1, we saw a record number of new deals that were both generated in and closed within the quarter, a positive signal for growing market awareness and the general urgency around the demand for our solutions.

Tenants data is enabling better decision, making and outcomes for customers in crucial areas, where the increasing profitability and commercial segments or meeting critical security and policy objectives and government.

During Q1, we saw a record number of new deals that were both generated in and closed within the quarter a positive signal for growing market awareness and the general urgency around the demand for our solutions.

Turning to recent announcements and so many of you have heard last month that plan has been awarded a contract for the electro optical commercial F. R. E. S L opportunity by the National Reconnaissance office in Nevada.

Speaker 2: Turning to recent announcements, I'm sure many of you have heard last month that Planner has been awarded a contract for the Electro-Optical Commercial Layer, or EOCL, opportunity by the National Reconnaissance Office, NRO.

Speaker 2: The EOCL award is the planet's largest contract to date, and we're thrilled to be awarded a firm fixed price contract of $145.9 million in the initial period of up to five years, of which $89 million is for the first two years.

The E S. L Award as planets largest contract to date and we're thrilled to have been awarded a firm fixed price contract of $145 $9 million in the initial period of up to five years of which $89 million is for the first two yes.

Speaker 2: This initial award significantly increases our revenue visibility by almost doubling the backlog of contracted revenue as we had on April 30th. Through EOCL, Planet will supply Planetscope monitoring, SkySat tasking, and archive access to the US government.

This initial award significantly increases our revenue visibility by almost doubling the backlog of contracted revenue as we had on April 30th.

E S. L panic moves supply planet Skype monitoring Sky sent tasking and archive access to the U S government.

Speaker 2: The procurement vehicle is structured to give the NRO flexibility, for instance, to purchase additional products or packages throughout the lifetime of the contract, to exercise options and execute change orders that can expand the scope of our partnership, as well as to extend the contract for up to 10 years.

The procurement vehicle instructed to give the NOL flexibility for instance to purchase additional products. So packages throughout the lifetime of the contract to exercise options and execute changeovers that can expand the scope of our partnership as well as to extend the contract for up to 10 years.

Speaker 2: EOCL is the largest commercial satellite data procurement in history, an industry defining vehicle for unclassified and shareable commercial satellite imagery.

E. S. Yeah. This is the largest commercial satellite data procurement and history and industry defining vehicle for unclassified and shadow commercial satellite imaging.

Speaker 2: It represents the U.S. federal government's significant investment in and commitment to the commercial remote sensing sector. We at Planet have long held the conviction that unclassified commercial satellite imagery not only equips the government with differentiated and innovative intelligence capabilities, but also increases transparency that advances global security, as well as trust between governments and citizens.

It represents the U S federal government's significant investment in and commitment to the commercial remote sensing sector. We have patents have long held the conviction the unclassified commercial satellite imagery now only eclipsed the government with differentiated and innovative intelligence capabilities, but also increases transparency that advances global security as well as trust between gum.

And citizens E. S. L. As this conviction realized we're proud to have been selected by the animal and a focus on delivering excellent services to the government for this contract ambien.

Speaker 2: EUCL is this conviction realised. We're proud to have been selected by the NRO and are focused on delivering excellent services to the government for this contract and beyond.

Speaker 2: Let me turn now to our work in Ukraine. As we mentioned last quarter, we are supporting critical efforts in three key areas to provide imagery to governments, aid and relief organizations, as well as data analysts in the media.

Let me turn now to our work in Ukraine, as we mentioned last quarter. We are supporting critical efforts in three key areas to provide imagery to governments eight and relief organizations as well as data analysts and the media.

Speaker 2: We continued that important work in Q1 and it has remained a high priority for our team.

We continued that important work in Q1 and has remained a high priority for our team to.

Speaker 2: To share some examples about how our products are being used, let me focus on one area of humanitarian operation.

To share some examples about how our products being used let me focus on one area of humanitarian operations.

Speaker 2: We are working with and supplying data to nearly 30 NGOs and intergovernmental bodies who are supporting a number of humanitarian operations in Ukraine. These include civilian evacuation and planned demining operations, conducting building damage assessments, tracking alleged human rights abuses, and trying to mitigate and measure impacts to food supplies.

We are working with and supplying data to nearly 30, Ngos and gum into governmental bodies, who are supporting a number of humanitarian operations in Ukraine. These include civilian evacuation and plans the mining operations conducting building damage assessments tracking alleged human rights abuses and trying to mitigate and measure impacts to foods.

Clients part.

Speaker 2: Part of this work also includes collaborations within the private sector as new AI and machine learning platforms that sit on top of our satellite data and generate insights in new ways.

Part of this work also includes collaborations within the private sector as new AI and machine learning platforms that sit on top of our satellite data and generate insights in new ways.

Speaker 2: Similarly, we are also seeing a number of government and commercial customers expanding their work in new geography or applications, particularly in measuring impact on global supply chain and food security by surveying other regions' crop yields, to predict commodity pricing or to explore insurance and financial security for farmers.

Similarly, we are also seeing a number of government and commercial customers expanding their work and new geography or applications, particularly in measuring the impact on global supply chain and food security by surveying other reasons crop yields to predict commodity pricing or to explore in insurance and financial security for farmers.

Speaker 2: This leads me to some of our recent announcements in the commercial sectors we serve and we are particularly pleased with the growth and momentum we saw in the agriculture market in Q1.

This leaves me to some of our recent announcements and the commercial sectors. We serve and we are particularly pleased with the growth of momentum you saw in the agricultural market in Q1 as.

Speaker 2: As an example, we recently expanded our contract with Bayer, a leading international agriculture company, to develop digital solutions to support sustainable agriculture and drive supply chain efficiency. They are using Planets Fusion data, as well as high-resolution SkySat data, which can help to better understand historical and in-season performance and empower their data scientists to generate valuable insights that have the potential to support production globally.

As an example, we recently expanded our contract with bio <unk>, a leading international Agriculture company to develop digital solutions to support sustainable agriculture and drive supply chain efficiency.

They are using planets fusion data as well as high resolution scans that data, which can help to better understand historical and in season performance and empower their data scientists to generate valuable insights that have the potential to support production globally.

Speaker 2: Sustainability continues to be an area of focus across commercial sectors. As many of you have seen, we announced in Q1 that we have entered into an agreement with Moody's to explore and address the growing demand for assessing and monitoring ESG risk.

Sustainability continues to be an area of focus across commercial sectors. As many of you have seen we announced in Q1 that we've entered into an agreement with Moody's to explore unaddressed, the growing demand for assessing and monitoring ESG risks our partnership will explore how a high cadence geospatial data can be leveraged to further refine moodys <unk>.

Speaker 2: Our partnership will explore how our high-cadence geospatial data can be leveraged to further refine Moody's existing offerings spanning ESG, know-your-customer, supply chain and commercial real estate through real-time insights.

Listing offerings spanning E. S. G now your customer supply chain and commercial real estate through real time insights.

Speaker 2: As you've heard from us before, we think our data can help to improve the quality and consistency of ESG measurement and reporting, ultimately leading to better accountability and management of Earth's natural resources.

As you've heard from US before we think our data can help to improve the quality and consistency of ESG measurement and reporting ultimately leading to better accountability and management with Earth natural resources.

Speaker 2: On the civil government side, during Q1 we signed a 12-month contract with the Natural Resources Canada, the department of the Canadian government responsible for energy, minerals and metals, forests and other natural resources, as well as earth sciences, mapping and remote sensing. They plan to use Planets data to support their emergency geomatics services and other programs to provide critical, near real-time information to Public Safety Canada and emergency responders during ice breakup and flood events.

On the civil government signed during Q1, we signed a 12 month contract with the natural resources, Canada. The department of the Canadian government responsible for energy minerals, and metals forest and other natural resources as well as our sciences mapping and remote sensing they plan to use planets data support that emergency geometrics services and other programs to provide critical.

<unk> near real time information to public safety, Canada, and emergency responders during ice breakup and flood events.

Speaker 2: So as you can tell, we continue to serve a wide range of customers and use cases across the government and commercial sector.

So as you can tell we continue to serve a wide range of customers and use cases across the government and commercial sectors.

Speaker 2: We believe the broad diversity of our customer base and our commitment to building solutions aligned with our one-to-many business model differentiates us from the competition.

We believe the broad diversity of our customer base and our commitment to building solutions align with our one to many business model differentiates us from the competition.

Turning to product updates just ahead of the G. O N conference in April we released details about Pelican.

Speaker 2: Turning to product updates, just ahead of the GEOINT conference in April , we released details about Pelican, our upcoming next-generation high-resolution satellite fleet.

<unk> next generation high resolution satellite fleet panic.

Speaker 2: Pelican is expected to meet the evolving needs of customers who want real-time information about global events as they unfold, from floods and wildfires to political conflicts and threats to human rights.

Pelican is expected to meet the evolving needs of customers, who want real time information about global offensive download from floods and wildfires the political complex threats to human rights.

Speaker 2: As we shared, Pelican satellites are designed to deliver up to 30cm resolution imagery, reduced latency, and rapid revisit 12 times per day globally and up to 30 opportunities in mid-latitudes. An unprecedented revisit rate.

As we shed Pelican satellites are designed to deliver the 30 centimeter resolution imagery reduced latency and rapid revisit 12 times per day globally, and after 30 opportunities in mid latitudes and unprecedented revisit rate.

Speaker 2: As with all satellites designed at Planet, we are targeting a payback period of one year or less for the Pelicans, a reflection of our cost-efficient Agile Aerospace capabilities.

As with all satellites designed our planet, we are targeting a payback period of one year or less for the pelicans in reflection of our cost efficient agile aerospace capabilities.

In summary, Q1 was a terrific quarter in which we demonstrated strong execution evidenced by our results across the board. We continue to see growing demand for our unique solutions in multiple end markets driven by global recent global events in support of secular trends. We expect this momentum to continue going forward with that.

I'd like to turn over to Ashley after which we'll have some time for Q&A.

Thank you, Rob and thanks, everyone for joining today.

Speaker 3: As Will mentioned, our revenue for the first quarter of fiscal 23 ending April 30th came in at $40.1 million, which represents 26% year-over-year growth.

As will mentioned our revenue for the first quarter of fiscal 'twenty three ending April 30th came in at $41 million, which represents 26% year over year aircrafts.

Speaker 3: Top line growth has been accelerating as expected, and we're seeing the investments that we're making across the business drive clear results. Our sales and customer success teams continue to execute well, which is reflected in our key performance metrics.

Topline growth has been accelerating as expected and we're seeing the investments that we're making across the business drive clear results, our sales and customer success teams continue to execute well, which is reflected in our key performance metrics.

Speaker 3: Our end-of-period customer count grew to 826 customers, which represents 23% year-over-year growth. As you've heard on our prior calls, as well as today, our customer base spans a wide variety of industries and powers a diversity of use cases.

Our end of period customer count grew to 826 customers, which represents 23% year over year aircrafts.

As you've heard on our prior calls as well as today, our customer base spans a wide variety of industries empowers the diversity of use cases.

Speaker 3: We continue to see strong momentum in the form of contract expansions with our larger accounts, some of which we've discussed on today's call. We close the quarter with a net dollar retention rate of 105%, both including and excluding win-backs.

We continue to see strong momentum in the form of contract expansions with our larger accounts some of which we've discussed on todays call. We closed the quarter with a net dollar retention rate of 105%, both including and excluding Windex.

Speaker 3: Please note that this metric does not include the expansion with the U.S. government for the EOCL contract award as that was signed in our fiscal Q2.

Please note that this metric does not include the expansion with the U S government for the S. L contract award and that was signed in our fiscal Q2.

Speaker 3: This net retention rate represents a strong start to the fiscal year and is more than 10 percentage points higher than the retention rates we reported for Q1 last year. We anticipate that this metric will continue to expand over the year as we see the returns on the investments we have made in both our products and our global customer success teams.

This net retention rate represents a strong start to the fiscal year and is more than 10 percentage points higher than the retention rates, we reported for Q1 last year.

We anticipate that this metric will continue to expand every year as we see the returns on the investments we have made in both our products and our global customer success teams.

Speaker 3: These investments enable us to achieve shorter time to value for our customers, as well as increase the ease of use of our solutions, which ultimately makes Planet's platform even stickier than it is today.

These investments enable us to achieve shorter time to value for our customers as well as increase the ease of use of our solutions, which ultimately makes planet's platform even stickier than it is today.

Speaker 3: As a reminder, we report net dollar retention rates as a percentage of ACB generated by existing customers in the period as compared to the ACB of all contracts at the beginning of the fiscal year from the same set of customers.

As a reminder, we report net dollar retention rate as a percentage of the ACB generated by existing customers in the period as compared to the ACB of all contracts at the beginning of the fiscal year from the same set of customers.

Speaker 3: Please see the accompanying slides in our investor relations website for more detail on how we measure net dollar retention rates.

Please see the accompanying slides in our Investor relations website for more detail on how we measure net dollar retention rate.

Turning to gross margin, we expanded our non-GAAP gross margins to 45% for the first quarter of fiscal 'twenty, three compared to 41% in the prior year the.

Speaker 3: Turning to gross margin, we expanded our non-GAAP gross margins to 45% for the first quarter of fiscal 23, compared to 41% in the prior year. The expansion of gross margins continues to be driven by the growth of our top line, the efficiency of our industry-leading agile aerospace approach, and the fundamentals of our one-to-many data subscription business model. We expect gross margins to continue to expand meaningfully in the years ahead as we scale.

The expansion of gross margins continues to be driven by the growth of our top line the efficiency of our industry, leading agile aerospace approach and the fundamentals of our one to many data subscription business model.

We expect gross margins to continue to expand meaningfully in the years ahead as we scale.

Speaker 3: Adjusted EBITDA loss was $16.3 million for the quarter, in line with our guidance range. As shared previously, we are investing in our teams across the planet to meet the increasing demand for our solutions and our obligations as a public company.

Adjusted EBITDA loss was $16 $3 million for the quarter in line with our guidance range as shared previously we are investing in our teams across planet to meet the increasing demand for our solutions and our obligations as a public company.

Speaker 3: Capital expenditures for the quarter, including capitalized software development, were $3.5 million, or approximately 8.7% of revenue, also in line with guidance.

Capital expenditures for the quarter, including capitalized software development were $3 $5 million or approximately eight 7% of revenue also in line with guidance.

Speaker 3: Turning to the balance sheet, we ended the quarter with $484 million in cash, which we believe provides us sufficient capital to invest behind our growth accelerating initiatives. From our perspective, we are well positioned to grow through cash flow break-even and have a clear path to profitability.

Turning to the balance sheet, we ended the quarter with $484 million in cash, which we believe provides us sufficient capital to invest behind our growth accelerating initiatives from our perspective, we are well positioned to grow through cash flow breakeven and have a clear path to profitability.

Speaker 3: As we turn to guidance, I'd like to underscore the high level of visibility that we have because of our subscription business model. Percentage of recurring ACV was 92% of our book of business for the first quarter. Additionally, over 90% of our customers signed annual or multi-year contracts, with an average contract length of approximately two years weighted on an annual contract value basis.

As we turn to guidance I'd like to underscore the high level of visibility that we have because of our subscription business model.

Percentage of recurring ACB was 92% of our book of business for the first quarter.

Additionally, over 90% of our customers signed annual or multiyear contracts with an average contract length of approximately two years weighted on an annual contract value basis at.

Speaker 3: At the end of Q1, our remaining performance obligations were over $152 million, of which approximately 71% applied to the next 12 months.

At the end of Q1, our remaining performance obligations were over $152 million of which approximately 71% applied to the next 12 months.

Speaker 3: With the award that we received for the EOCL contract, our long-term visibility for the business has increased, as this one award almost doubles our current backlog. With this enhanced visibility to our revenue, we are tightening the ranges previously provided for fiscal 2023 guidance.

With the award that we received for the E. O T. L contract are long term visibility for the business has increased as this one award almost doubles our current backlog.

With this enhanced visibility to our revenue we are tightening the ranges previously provided for fiscal 2023 guidance.

Speaker 3: Looking ahead to the second quarter, we expect revenue to come in between $41 and $43 million, which represents growth of 38% year-over-year at the midpoint.

Looking ahead to the second quarter, we expect revenue to come in between 41, and $43 million, which represents growth of 38% year over year at the midpoint.

Speaker 3: we expect non-GAAP gross margin for Q2 of 44 to 46 percent. Our adjusted EBITDA loss for the second quarter is expected to be between negative 16 and negative 18 million dollars.

We expect non-GAAP gross margin for Q2 of 44% to 46% our.

Our adjusted EBITDA loss for the second quarter is expected to be between negative 16 of negative $18 million.

Speaker 3: We expect capital expenditures of approximately $5-6 million, which represents 12-14% of revenue.

We expect capital expenditures of approximately $5 million to $6 million, which represents 12% 14% of revenue.

As mentioned for the fiscal year ended January 31st 2023, we're tightening our range and expect revenue to be between 177, and $187 million, representing 35% to 43% year over year growth approaching 40% at the midpoint an increase from our last forecast.

Speaker 3: As mentioned, for the fiscal year ended January 31, 2023, we're tightening our range and expect revenue to be between $177 and $187 million, representing 35% to 43% year-over-year growth, approaching 40% at the midpoint, an increase from our last forecast.

Speaker 3: This is significant top-line acceleration on a year-over-year basis, more than double our revenue growth rate of the prior year.

This is significant topline acceleration on a year over year basis more than double our revenue growth rate of the prior year.

Speaker 3: We expect our non-GAAP gross margin to be between 47 and 49 percent, an improvement of approximately 10 percentage points year-over-year.

We expect our non-GAAP gross margin to be between 47, and 49% an improvement of approximately 10 percentage points year over year.

Speaker 3: Our adjusted EBITDA loss is expected to be between negative 60 and negative 70 million dollars. We're tightening the range for EBITDA even as we continue to invest to meet the market demand for our solutions and strengthen our operations as a public company.

Our adjusted EBITDA loss is expected to be between negative <unk> 60, a negative $70 million, we're tightening the range for EBITDA, even as we continue to invest to meet the market demand for our solutions and strengthen our operations as a public company.

Speaker 3: We continue to expect CapEx to be approximately $20 to $25 million, representing approximately 11 to 13 percent of revenue.

We continue to expect Capex to be approximately 25 $20 million to $25 million, representing approximately 11% to 13% of revenue.

Speaker 3: Finally, I'd like to let everyone know that we are planning to host an Investor Day on October 12, 2022. We expect that it will be live in San Francisco as well as webcasted. Our Investor Relations team will provide more details in advance of the event, so please save the date.

Finally, I'd like to let everyone know that we are planning to host an investor day on October 12, 2022, we expect that it would be live in San Francisco as well as webcast in our Investor Relations team will provide more details in advance of the event. So please save the date.

Speaker 3: All in all, we continue to execute well against our plan, as shown by the strong results across the board. We are confident in the growing demand for our data and the value that we can deliver to our customers. And we are fortunate to have a high degree of visibility in our business model, which has increased with the landmark EOCL award. Operator, that concludes our comments. We can now take questions.

All in all we continue to execute well against our plan as shown by the strong results across the board. We are confident in the growing demand for our data and the value that we can deliver to our customers and we are fortunate to have a high degree of visibility in our business model, which has increased with the landmark E S yellow wide operator.

That concludes our comments, we can now take questions.

Speaker 1: If you would like to ask a question, please press star followed by one on your telephone keypad. If for any reason you'd like to remove that question, please press star followed by two. Again, to ask a question, press star one.

If you would like to ask a question. Please press star followed by one on your telephone keypad if for any reason you'd like to remove that question. Please press star followed by Q again to ask a question press Star one.

Speaker 1: As a reminder, if you're using a speakerphone, please remember to pick up your handset before asking your question. We will pause here briefly as questions are read.

As a reminder, if you're using a speaker phone. Please remember to pick up your handset before asking your question. We will pause here briefly ask questions are registered.

Speaker 1: Our first question comes from Ryan Koontz with Needham & Co.

Our first question comes from Ryan Koontz, with Needham and co.

Speaker 4: Hi. Great. Thanks for the question. How should investors think about the EOCL award relative to your trailing revenue for this customer set? Can you give us any color there? Thank you. Great.

Hi, great. Thanks for the question.

Should investors think about the iOS yellow ward relative to your trailing revenue for this customer set can you give us any color there. Thank you.

Hello.

Our management team.

Yeah.

Operator, so you still have made one.

Yes.

Okay.

Speaker 2: Oh, Ashley, why don't you proceed again? Are you able to hear us now?

Oh asked me why didn't you say it again are you able to hear us now.

Speaker 3: Yes. Yeah. Got you. Okay, great. Great. So, it obviously was an exciting reward. It was at the higher end of our expectations and was a meaningful expansion for us. So, we don't provide the specifics typically on our customer revenue or revenue by customer, but because the contract will go into our backlog, we've provided that level of detail with respect to the awards.

Yes, yes, yes.

Okay great.

Great.

So and it obviously was an exciting award it was at the higher end of our expectations and was a meaningful expansion for us so.

Don't provide the specifics typically an honor.

Customer revenue our revenue by customer.

But because of the contract will go into our backlog with provided that level of detail with respect to the OE.

Got it.

Speaker 4: Got it. If I could just get a quick follow-up, any color on your go-to-market expansion activities in terms of sales ads, what's the labor pool looking like right now, and new processes you're putting in place. Can you give us an update on that side as well?

If I could just get a quick follow up any color on your go to market expansion activities in terms of sales adds you know, what's the labor pool looking like right now in new processes, you're putting in place can you give some update on that side as well.

Yeah.

Speaker 3: Yeah, there's there's actually a lot of exciting work going on across the sales team around the globe. So, for example.

Yeah, there's actually a lot of exciting work going on across the the sales team around the globe and so for example, we've talked in the past about the fact that a lot of our sales activity is just in response to inbound demand and but we've been investing in our SDR teams globally to complement that the inbound.

Speaker 3: We've talked in the past about the fact that a lot of our sales activity is just in response to inbound demand, but we've been investing in our SDR teams globally to complement the inbound demand with a lot more focused outbound marketing activity, which we believe will continue to drive our pipeline growth, which was strong in the quarter.

And with a lot more focused and outbound marketing activity, which we believe will continue to drive our pipeline growth, which was strong in the quarter and in terms of sales head count and we've been hiring at all levels around them and in all parts of the sales organization. So we're on track to some of the metrics that we talked about at analyst day in terms of.

Speaker 3: And in terms of sales headcount, we've been hiring at all levels around and in all parts of the sales organization. So we're on track to some of the metrics that we talked about at Analyst Day in terms of, we wanted to reach at least 46 ramped reps by year end. And we're on track to definitely meet and likely exceed that number.

Wanted to reach at least 46 ramped reps by year end and we're on track to two definitely meet and likely exceed that number.

Speaker 4: Great. Thanks so much, Ashley. Appreciate it. Great. Thank you.

Great. Thanks, so much Ashley I appreciate it.

Thank you.

Speaker 1: Our next question comes from Jeff Van Ree with Greg Hallam Capital.

Our next question comes from Jeff Van <unk> with Craig Hallum Capital Group.

Speaker 5: Great, guys. Congratulations on the EOCL. A couple for me. You mentioned the pipeline growth. Maybe you could put a little finer point on it. Can you quantify the dollar value growth year over year and any notable compositional change in terms of what's in there?

Great guys. Congratulations on the U C L. A couple for me.

You mentioned the pipeline growth, maybe you could put a little finer point on it can you quantify the dollar value growth year over year and any any notable compositional change in terms of what's in there.

Speaker 3: So dollar value growth on pipeline, we didn't break that out this quarter other than to say it's strong upward tick in all geographies.

So dollar value growth on pipeline and we didn't break that out this quarter other than to say it's strong.

Upward tick in all geography.

Speaker 3: And I'm sorry, I forget the second part of your question.

And I'm, sorry, I forgot the second part of your question.

Any composition will change in the pipeline.

Yeah.

Speaker 3: No, I'd say actually, I mean, one of the comments that Will made in his prepared remarks was about the fact that we saw some acceleration in close rates on deals, so we, in terms of

No I'd say actually I mean, one of the comments that will made in his prepared remarks was about the fact that we we saw some acceleration and close rates on deals. So we in terms of.

Speaker 3: deals that came into the pipeline in quarter and actually closed in quarter, we saw a pretty significant uptick on that front.

Deals that came in to the pipeline in quarter and actually closed in quarter, we saw pretty significant uptick on that front.

Speaker 3: uh... which just speak to the fact that were really were releasing the product market that across the board uh...

Which just speaks to the fact that we're really we're really seeing the product market fit across the board.

Speaker 3: Obviously, there's a lot of relevance to our solutions in things that are kind of top of mind for both government and commercial customers around the globe, whether that's.

Obviously, theres a lot of relevance to our solutions and things that are kind of top of mind for both government and commercial customers around the globe, whether that's some of the global security concerns that we've seen in the Ukraine or some of the secondary and tertiary effects of it whether that's supply chain or energy.

Speaker 3: some of the global security concerns that we've seen in the Ukraine or some of the secondary and tertiary effects of it, whether that's supply chain or energy costs or things like that.

Energy costs or things like that so I'd say, it's across all vertical markets and its really just seeing that momentum continue I don't know if you've got more to add on that.

Speaker 2: So I'd say it's across all vertical markets, and it's really just seeing that momentum continue. I don't know if you've got more to add around that, Will. Yeah, I know. I mean, as we said, obviously, we're very pleased with the EOCL award and the government business, but at the same time, the civil government business has been expanding. And as I mentioned in my remarks, the agricultural business has been very strong this quarter too.

As we said obviously is very pleased with the ESC award in the government business, but at the same time the civil government business has been expanding and as I mentioned in my remarks. The agricultural business has been very strong this quarter. Two we mentioned that a buyer a partnership I can also imagine there's a couple of others.

Speaker 2: We mentioned the Bayer partnership, I can also mention there's a couple of others. We have two new customers, one is Leaf, an agriculture data infrastructure company, it's pretty cool. Farm QA was another customer in the ag space, they're using our data to help monitor crop development, detect crop health issues. There are some really exciting ones in the ag space and we're seeing acceleration there, so it's across the board.

We had two new customers, one leaf and agriculture data infrastructure company. It was pretty cool farm QA was another customer in the AG space, they're using our data to help monitor developments to that Cup health issues.

<unk> XR.

One's in the AG space and machine. So we're seeing an acceleration there so it's across the board.

Speaker 2: I'm very pleased with the sales team's execution this quarter. It's just been fantastic and, I mean, you know, this growth in acceleration has just been exactly on track as we...

I'm very pleased with this winelands execution. This quarter has just been fantastic and I mean, you know.

This growth in acceleration has just been.

Exactly on track as we had planned.

Speaker 5: Great, thanks. And one last, if I could sneak it in, I hate to split hairs, but actually, as it relates to the guidance, obviously the midpoint's being tweaked modestly higher. The high end of the range was 190. You pulled the high end of the range down to 187. Let me split hairs for a second. In terms of pulling that down, what would account for a scenario where the high end comes down slightly?

Great. Thanks, and one last if I could sneak it in the eight to heat to split hairs, but actually as it relates to the guidance obviously, the mid points being tweaked modestly higher the high end of the range was 190, you pulled the high end of the range down to 187, let me split hairs for a second in terms of pulling that down what would account for a scenario where the high incomes.

<unk> slightly.

Speaker 3: Basically, it came down to the timing for when the EOCL contract went into effect.

Basically it came down to the timing for when the S. L contract went into effect.

Speaker 3: So, you know, because that date slipped a few months.

So you know because that that date slipped a few months and even though it came in at the hiring is the range you saw that kind of two competing effects. So and as you noted we did bring up the midpoint and we're obviously and excited because having that award locked and enhances our visibility not just for this year, but for <unk>.

Speaker 3: Even though it came in at the higher end of the range, you saw the kind of two competing effects. So, as you noted, we did bring up the midpoint, and we're obviously excited because having that award locked in enhances our visibility, not just for this year, but for next year. But those are kind of the puts and takes that you saw going into the guidance update.

Sure, but those are kind of the puts and takes that you saw going into the the guidance update.

Okay I'll leave it there thank you.

Great. Thanks, Jeff.

Speaker 1: Our next question comes from Mike Lettermore with Northland Capital Market.

Our next question comes from Mike Latimore with Northland capital markets.

Speaker 6: Great. Thanks. Yeah. Very nice to see the growth acceleration here.

Great. Thanks.

Nice to see the growth acceleration here.

Speaker 6: In terms of the sales cycle, it sounds like it's shrinking, just to be clear. And is it shrinking outside of kind of the Ukraine influence as well?

And in terms of the sales cycle. It sounds like it's shrinking just to be clear the shrinking outside of kind of the Ukraine influence as well.

Speaker 2: I think so, yeah. I mean, just firstly, I'm very happy with the growth acceleration to your comment there. You know, obviously, 60% year-over-year last year, and it went up and up, and we're forecasting it to go up again in both meaningful steps. So we're very proud about that. I mean, yeah. I mean, we did mention on the speed there.

I think so yes, I mean, just firstly I'm very happy with the growth acceleration C O.

Your comment there.

Obviously, 16% year over year last year, it went up and up and we were forecasting it to go up again in both meaningful steps. So we're very proud about that yeah. I mean, yeah. I mean, we did mention on the speed. There that are we have had more customers. This this past quarter that started and closed in.

Speaker 2: that we have had more customers this past quarter that started and closed in the quarter. And we're very, very happy with that sort of.

Of course, some are very very happy with that sort of pace.

Speaker 2: pace. I think some of it relates to Ukraine, it's a little bit hard to pass it out, but certainly the Ukraine situation is, of course, pushing demand on the defense and intelligence sector. I will just note as well that this is now becoming a significant food security crisis and we're tracking that with NGOs and also with our agriculture customers. And so this is now affecting, well, pretty much all of our sectors, but especially agriculture and defense and intelligence. And so we see it affecting planet business across the board and largely in positive ways.

U S. I think some of it relates to the U K and it's a little bit hard to parse it out but certainly the.

The Ukraine situation is is is of course pushing demand on the defense and intelligence sector I will just note as well that this is.

Now, becoming a significant food security crisis, and we're tracking that with Ngos and also with our agriculture customers and so this is now affecting.

Well pretty much all of our sectors, but especially agriculture in defense and intelligence and so we see it affecting.

Planets business across the board and it largely in positive ways not that we're trying to exploit that situation, but it is a global security situation that that where that is leading to more urgent need for our data.

Speaker 2: not that we're trying to exploit that situation, but it is a global security situation that is leading to more urgent need for our data. Yeah, thanks.

Yes that makes sense.

Any.

Speaker 6: Qualitative update on Vanderstad and these kind of three variables you announced in April . How are they getting kind of woven into the demand here?

Just qualitative update on vendors that in these kind of three variables you announced in April how are they getting kind of woven into the demand here.

Speaker 2: Yeah, I'm very, very pleased with that team and its performance. It's been great cultural synergies with our team, so that's the first point. It's always an important point. Also, I've been on a number of sales trips with our team. They've got an excellent sales team, and we can see already the value proposition for our customers.

Yeah, very very pleased with that team and its performance.

It's been great cultural synergies with our team. So that's the first point and it's always an important point also I've been on a number of our sales trips with that team that got an excellent sales team and we can see already the value proposition for our customers. We've had some joint customers and we can see how they're pulling together these.

Speaker 2: We've had some joint customers and we can see how they're pulling together these capabilities and we're seeing the interest.

And we're seeing the interest is definitely a one plus one equals three so the situation when we combine their packet microwave data with our.

Speaker 2: It's definitely a one-plus-one-equals-three sort of situation when we combine their passive microwave data with our electro-optical imagery data. It's complementary and the customers are really seeing that, especially in agriculture and agriculture insurance. So, yeah, pretty cool. And we'll continue to look for great M&A opportunities that accelerate our products, our business, and bring in great teams like Banzap.

Electro optical imagery data.

It's complementary and and the customers already saying that especially in agriculture and agriculture insurance.

So, yes pretty cool and.

And we will continue to look for great M&A opportunities to accelerate our products aren't business in and bringing in great teams like bonds out.

Speaker 6: And I guess on M&A is the environment, how is the environment and how is

And I guess on M&A is the environment.

The environment in ours.

Speaker 6: how our seller expectations at this point given the market pullback here.

There are seller expectations at this point given the market pullback here.

Speaker 2: Well, look, overall, we still believe the planet is a natural consolidator in this space and we're looking for excellent opportunities, again, like BANZAT, that are really great teams and complementary products and services to add to our customer needs, so we continue to do that. Obviously, we're taking into account the economic situation in thinking about these things, but we continue to see opportunities there and we'll update you whenever anything becomes real. Thank you.

But overall, we still believe that planet is the natural consolidator in this space and we're looking for <unk> opportunities is again like fans that are really great teams.

And complementary products and services to add to our customer need. So we continue to do that obviously, we take into account that the economic situation and in thinking about these things, but we continue to see opportunities there and the update you whenever anything becomes real.

Okay sounds good.

Thanks, a lot.

Speaker 7: Great. Thanks, Mike.

Great. Thanks, Mike.

Okay.

As a reminder to ask a question. It is star one on your telephone keypad.

Speaker 1: As a reminder to ask a question it is star one on your telephone keypad.

Speaker 1: Our next question comes from Chris Quilty with Quilty Analytics.

Our next question comes from Chris Quilty with Quilty analytics.

Speaker 1: Thanks. I just wanted to follow up on that M&A direction. When you look at the opportunities out there, do you think your needs are primarily on, you know, acquiring people in some cases through acquisition or software or are there things on the hardware side given some of the future efforts you've got on.

Thanks, just wanted to follow up on that that M&A direction. When you look at the opportunities out there do you think your needs are primarily on our.

Acquiring people in some cases through acquisition or software or are there things on the hardware side given some of the.

Future efforts you've got ongoing.

Speaker 2: Well, all of the above, but I would say that the bigger focus is on the software side to help us going up the stack. Obviously, we'll look for business acceleration and teams, and that's sort of intricately related to all of it. And we won't shy away from data sets. Obviously, in some sense, Vanderbilt talked a little bit about it. It was more the analytics, but they brought a new data set through that analytics in a way that was complementary. So we'll look at that, too. But I would say software is the biggest focus.

Well all of the above but I would say that the bigger focus is on the software side to help us going up the stack.

Obviously, we'll look for business acceleration and teams and that sort of indicate the related all of it and we won't shy away from dataset, obviously in some sense benefit talks a little bit of that it was more of the analytics that they bought a new data set through that analytics in a way that was complementary said, we'll look at that too, but I would say its software is the biggest focus.

Speaker 8: Gotcha. And a follow-up on Ukraine, did you see any, you know, meaningful uptick in the quarter that you can measure that, you know, may or may not be repeatable in terms of short-term versus long-term contracts? And in terms of activity that you've seen, is it fair to assume it's heavily weighted towards the defense and intel customers, or are you seeing demand from other users and applications also?

Got you and a follow up on Ukraine did you see any meaningful uptick in the quarter that you can measure.

That may or may not be repeatable in terms of short term versus long term contracts and.

In terms of activity that you've seen is it fair to assume it's heavily weighted towards defense and Intel customers or are you seeing demand from other users and applications also.

Speaker 2: Well, it's hard to pull everything out. But let me just say that broadly, again, we're seeing a lot of demand there. And we have had new customers come in and pretty fast. And so we definitely had a number of cases where the customers that we have been talking to for a while, and then they came on board pretty quickly during this time. So that's that. But it's not just D&I. Per my earlier comment, this is a really affecting

Well, it's hard to pull everything out, but let me just say that broadly again, we're seeing a lot of demand there and we have had new customers come in and pretty fast and so we definitely had a number of cases, where the customers that we have been.

Talking to for a while and then they came on board pretty quickly during this time so that that.

But it's not just eni.

Per my earlier comment this is really affecting our civil government.

Speaker 2: civil government, with NGOs, with refugees, and then of course food and food security which talks to agriculture as well as civil government.

With a N N G OS with refugees in and then of course, food and food security, which talks to agriculture as well as civil government as well as Ngos and there's some really incredible work being done on assessing the food crisis in Ukraine affects the supply chain.

Speaker 2: as well as NGOs, there's some really incredible work being done on assessing the food crisis in Ukraine that affects the supply chain. You've seen even in the press some of where we've exposed

<unk> seen even in the past some of where we'd be exposed.

Speaker 2: The attacks by Russian forces on grain infrastructure, which is actually illegal under international law, as I understand it, and so that has been reported out in terms of our way in which we're holding all sides accountable in this situation. But that also affects food security, so it's.

The attacks by Russian forces on grain.

Grain infrastructure, which is actually illegal under an essential or as I understand it and so that has been reported out.

And in terms of a way in which we're holding all sides accountable in this situation.

But that also affects the food security. So it is the food being grown there the transportation systems, the storage systems and add companies, who are interested in that there as well as the governments. So it's it's it's driving demand across the board.

Speaker 2: the food being grown there, the transportation systems, the storage systems, and ag companies are interested in that, as well as the government. So it's driving demand across the board.

Great and final question on the Pelican initiative I appreciate the information you put out on that.

Speaker 8: Great. And final question on the Pelican initiative. I appreciate the information you put out on that. Have you seen, you know, given current supply chain issues any challenges that might either impact the timing or cost of that effort? And one specific follow-up, just relative to the new capabilities that brings online.

Have you seen given current supply chain issues any challenges that might either impact the timing or cost.

Of that effort and one specific follow up just relative to the new capabilities that brings online.

Speaker 8: Do you anticipate either significant new investments in capabilities or software or?

Do you anticipate either significant new investments in capabilities or software or.

Speaker 8: the specific sales forces to basically target the customer set that would be most interested in that higher resolution.

Specific sales forces to.

Basically target the customer set that would be most interested in that higher resolution imagery.

Speaker 2: Yeah, I mean, so so to the supply chains, no, there's no no major impact. I mean, we have seen issues with some of our supply chain pieces, but very little. And one of the advantages of our agile aerospace approach is that because we're building the satellites in-house,

Yeah, I mean, so so to the supply chain no. There's no major impact I mean, we have seen it.

Issues with some of our supply chain pieces, but very little and one of the advantages of our agile aerospace approach is that because we are building the satellite in house.

Speaker 2: There's two options for that. One is we can continually look at different supply chain vendors, look at alternatives for different components, and that ensures that we have redundancy. The second thing is that we can often stockpile. We do stockpile critical components. We're not producing these satellites in large numbers.

As to our shows so that one is we can continually look at different supply chain vendors look at alternatives with different components and that ensures that we have redundancy. A second thing is that we can often stockpile. We do stockpile critical components were not producing the satellites in large numbers.

Speaker 2: And so, of course, stockpiling is not crazy, and so we do some of that.

And and so of course, you know stockpiling as is not crazy and so we do some of that.

Speaker 3: And just to the latter question, again, another advantage of our agile aerospace approach, that is, and having the satellites being built in-house, is that we can flex how many satellites we pull and launch to the demand that we see. And so that's certainly applicable to the Pelican series. Was there another aspect to your question? I'm not sure if I answered it all. I think one of the questions you had was about whether we need to hire specialized sales teams. I'd say we've been investing both in...

And just to the latter question.

Again, another advantage of our agile aerospace approach that is in having the satellites being built in house is that we can we can flex the how many satellites, we built launch to the demand that we see and and so that certainly applicable to the Pelican series, but there's another aspect of your question I'm not sure if I answer that and I think one of the questions. You had was shut out whatever.

We need to hire specialized sales.

I'd say, we've been investing both in.

Speaker 3: our government teams, both on the federal side, domestically and internationally, as well as the civil government side. And then also in our global strategic accounts, because remember, we're building systems that are not simply designed for government or defense and intelligence use cases, but rather more broad commercial use cases as well. And so we've really been adding the sales teams across the board.

Our government team and theirs.

The federal side.

Domestically and internationally as well as the civil government side and then also in our global strategic accounts because remember we're building systems that are not simply designed for government defense and intelligence use cases, but rather more.

Commercial use cases, as well and so we've really been adding the sales teams across the board.

Speaker 8: Great. Maybe it was an inartful way to ask the question, but within your existing customer base.

Great. Maybe it was you know artful way to ask the question, but within your existing customer base.

Speaker 8: Do you have a good sense of what sort of uptake for 30-centimeter imagery there might be that you can sort of flip the switch and sell to?

Do you have a good sense of what sort of uptake for 30 centimeter imagery, there might be that you can sort of flip the switch.

And sell to existing customers.

Speaker 2: Yes, absolutely. And we've thought about this a lot. Obviously, we designed it, thinking about all of our customer needs. And I want to point out right out of the gate that this is not just about defense intelligence. We've seen value propositions in disaster response from civil governments, which is interested in the rapid revisit. We've seen interest from the mapping sector. One of the interesting things that just, for example, is that when you get down to about 30 centimeters, you can see lane markings. So mapping companies and governments are interested in that.

Yes, absolutely and we thought about this a lot obviously, we designed it thinking about all of our customer Nathan and I want to point out right out of the gate that this is not just about defense intelligence, we've seen our value propositions in disaster response from civil governments.

And interested in the rapid revisit we've seen interest from the mapping sector. One of the interesting thing is that just for example is that when you get down to about 30 centimeter as you can see lane markings of mapping community a company is in and governments are interested in that.

Speaker 2: And so we took all those interests, and of course, it depends on intelligence, which often drives resolution on these systems, as well as revisits.

So we took all those interested in of course, it depends on intelligence, which often drives a resolution on these systems as well as revisit rates and and pull them into our system that we thought would be out of support supply and enable new and great services to all of those sectors.

Speaker 2: and pull them into a system that we thought would be able to supply and enable new and great services to all of those sectors and we're seeing that pull. We've obviously designed that with that in mind and as I said we can flexibly build those to that demand. We've got a base plan and we can add more as needed.

And and were seeing that poll, we've obviously designed that with that in mind and as I said, we can flexibly build those to that demand. We've got a baseband them, we can add more as needed.

Great and congrats again on the E. S L Award.

Thank you. Thank you.

Okay.

Yeah.

Speaker 1: Our next question is from Noah Popenock with Golden Sex.

Our next question is from Noah <unk> with Goldman Sachs.

Hello, everyone.

Speaker 9: Hey Noah. Hey. Can you hear me? Hey. Hey, how's it going?

Hey, Ken.

Hey, How's it going.

Okay.

Speaker 10: So, one of the other companies on EOCL put out,

So you're.

You're one of the other companies.

C L.

You know put out.

Speaker 10: a pretty detailed press release with a lot of numbers, even held a conference call about it. What is the reason for not providing that disclosure on size of the data?

Like a pretty detailed press release with a lot of numbers you can hold a conference call about it.

What is the reason for not providing that disclosure on.

Sizing what that means for your business.

Well I mean broadly firstly, let me say.

Speaker 2: Well, I mean, broadly, firstly, let me say we're very, very happy with this award. It's very exciting.

We're very very happy with this award it's very exciting.

Speaker 2: biggest planet contract ever, and it came in, as Ashley mentioned, towards the top end of our range, and so we're very excited with it. We're sharing the firm commitment here, which we think is the right thing to do. The contract is flexible to allow multiple different options, but, yeah, we are very proud of that contract and how we can serve the government.

Because the planet contract ever.

And it came in as Ashley mentioned towards the top end of our range and so we're very excited with it.

Ah we're sharing the firm commitments are here, which we think is the right thing to do the contract is flexible to allow multiple different options, but.

But but yeah, we are very proud with that of that contract.

And and how we can serve the Gabon.

Speaker 3: Yeah, and I think, Noah, the challenge for us was being in a quiet period ahead of having announced our Q1 results and working through the impact of the award on guidance and getting all that information out together impacted the timing of when we provided the additional color around what goes into backlog. So that's the primary driver. We figured the award's the most relevant in the context of what it means for our guidance. For more information visit www.fema.gov

Yeah, and I think now the challenge for US was with being in a quiet period ahead of having announced our Q1 results.

And working through and the impact of the award on guidance and getting all of that information out together impacted the timing of when we provided the additional color around what goes into backlog.

So that's the primary driver we figured the awards are as relevant in the context of what it means for our guidance.

I'll answer your question what is the.

Speaker 11: It does, to a degree, yes. Since you've quantified the impact to your backlog, can you just give us your updated backlog? I don't think I've seen that.

It does to a degree yes.

Since you.

Modify the impact to your backlog.

Can you just give us your updated.

Backlog I don't think I've seen that.

And I gave you.

Speaker 3: Yeah, it gave remaining performance obligations, which is the disclosure that's in our 10-Q.

Yeah, I gave remaining performance obligations, which is the disclosure that's in our 10-Q.

Speaker 3: So that was $152 million as of April 30th.

So that was 152 million as of April 30th.

Speaker 3: And then we spoke to the fact that the firm contracted part of the award is roughly $146 million. So that's why I said it roughly.

And then we spoke to the fact that the firm contracted part as the of the award is roughly $146 million. So that's why I said it it roughly doubles backlog is just modestly different from our peers in that.

Speaker 3: backlog is just modestly different from RPOs in that.

Speaker 3: Backlogs include those that have termination for convenience provisions, which some government contracts do have, and this one does have, so it's not clear to me yet that this will go into necessarily RPOs, since that excludes anything with a term for convenience clause, but it definitely goes into backlog, so we'll likely be reporting both of those numbers going forward. Historically, there hasn't been a big difference for us between RPOs and backlogs.

I'm back.

It does that have a termination for convenience provisions, which and some government contracts do you have an and this one does have so it's not clear to me that this will go into necessarily the rps since that excludes anything with a term for convenience clause and but it definitely goes into backlog. So we'll likely be reporting both of those numbers going forward.

Historically, there hasn't been a big different trusts between our P is in backlog.

Okay.

Speaker 3: And the 152 is before or after EOCL? The 152 is before, as of April 30th. The EOCL award didn't come in until Q2.

And the $1 52 is as before or after <unk>.

The one 152 as before as of April 30th E. S. L Award didn't come in until Q2.

Speaker 11: And EOCL effectively doubles the 152.

And.

Effectively doubles the 152.

Speaker 3: Well, 146 is almost as much as 152, and it gets added to it. So it doesn't account for any puts and takes to RPOs that happen in Q2. But that was the rough math we were trying to provide.

Well 140, six's almost as much as 152 and it gets added to it.

So it doesn't account for any puts or takes to rps that happened in Q2, but that was that was a rough math.

I see.

Speaker 10: Sorry, I missed what the 146 was. Okay, that is helpful. I appreciate that.

Sorry, I missed I missed what the one important step towards that.

It is helpful. I appreciate that.

Speaker 10: You had indicated previously that your guidance for the year was conservative with regard to both timing and size of the range of possibilities on EOCL.

No problem you had indicated previously that your guidance for the year was conservative with regard to both the timing and size of the range of possibilities on iOS CFO .

Speaker 10: Today, you've raised your midpoint by $2 million.

Today, you've raised your mid point by two.

$2 million.

Speaker 10: I guess it's a little surprising that that's not, I guess that size is a bit surprising if you were.

I guess, it's a little surprising.

Thats not I guess that size is a bit surprising if you were pre.

Speaker 10: previously conservative on timing and size and you're saying that.

Previously a conservative on timing and size and you're saying.

Speaker 10: The timing, I guess, was on the conservative end, but the size is larger.

The timing I guess was on the conservative and what the size is larger.

Speaker 10: Is there something else that's moving around in the year outside of ESG?

Is there is there something else thats moving around in the year outside of <unk>.

Speaker 3: I mean, there are a lot of moving parts, as I've mentioned before, revenue is really driven by the timing of all new bookings. Obviously, you know, this is a sizable one, but we're

I mean, there are a lot of moving parts as I've as I've mentioned before revenue is really driven by the timing of our new bookings, obviously and this is a sizable one but and we're seeking.

Speaker 3: seeking to continue to add business to our book of business that will drive revenue in the year, most of them on a routable basis.

Seeking to continue to add business too and to our book of business that will drive revenue in the air and most of them on a on a ratable basis.

So.

Speaker 3: when you see us tightening the range from 170 at the bottom end up to 177, that's reflective of, you know, having de-risked a portion of that with knowing this award. We obviously are still going to be driving bookings in the air that should drive revenue,

When you see us tightening the range from one to $1 70 at the bottom end up to 177 Thats reflective of you know having derisked.

Portion of that with with knowing this award we obviously are still going to be driving bookings in there that should drive revenue, which.

Speaker 3: you know, kind of makes up the remainder of the range in the guidance, if that makes sense.

And you know kind of makes up the remainder of the range in the guidance at that that makes sense.

Speaker 10: It does. Okay. Last one. You have a separate release on the

Okay.

Last one you have a separate release on the expansion of the relationship with Bayer.

Speaker 10: expansion of the relationship with Bayer.

Speaker 10: Can you talk a little bit more about that? Is that a meaningful change in the work scope there or the revenue contribution, or is it more of a ongoing, continued type of thing?

Can you talk a little bit more about that as it was not a meaningful change in the work scope there or the revenue contribution or is it more of a ongoing continued.

Type of thing.

Speaker 2: Well, it's a meaningful expansion of that partnership, really, really. We have been working with them for a while but it's a meaningful expansion. And it's mainly about scaling up of their present capabilities, so it is all in precision agriculture, digital solutions, also a little bit into sustainable agriculture. They have a big push in sustainable agriculture although that effort is still more nascent. There's still a lot of expansion in that account and we're very excited to be partnering with Bayer.

Well, it's a meaningful expansion of that partnership really really well.

We have been working with them for a while but it's a meaningful expansion.

And it's mainly about scaling up of that person capabilities. So it is all in in precision agriculture digital solutions also a little bit into sustainable agriculture. They have a big push in sustainable agriculture, although that is still more nascent there's still a lot of expansion in that account.

And we're very excited to be partnering with fire.

Speaker 9: Okay, thanks so much.

Okay.

Thanks, so much.

Great. Thank you now.

Speaker 1: As a reminder, if you ask a question, press star 1.

As a reminder to ask a question star one.

Speaker 1: Our next question is from Jeff Van Ree with Greg Holland, Capital.

Our next question is from Jeff Van <unk> with Craig Hallum Capital Group.

Speaker 5: Great. Just a couple quick follow-ups. Ashley, did you have the RPOs for the prior year, so the April 21 quarter, both 12-month in total?

Great just a couple of quick follow ups actually do you have the Rps for the prior year. So April the April 'twenty, one corridor, both both 12 month and total.

Yeah.

Yes.

I'm sorry.

Looking at.

It's just making sure I'm looking at the right number so.

Speaker 3: Making sure I'm looking at the right number. So, that's as a, have it as the end of last year.

That says that it is at the end of <unk>.

Last year.

Please go ahead Sir.

Speaker 5: Yes, I guess what I'll tell you is...

Yes.

I can I could maybe a.

For one I guess, what I'll tell you edgardo.

Speaker 3: The next 12 months number on RPOs is up about 37% year over year for Q1.

The next 12 months number on an Rps is up about 37% year over year for Q1.

Okay.

Speaker 5: That's helpful, thank you. And then, Will, or I guess for both of you, you commented on bookings, I think Willie says you're super happy, very happy with the sales execution, again, can you put a finer point on it? I'm assuming that means they beat the bookings range of expectations of what you were looking for in the quarter, but dial that in a little more, how good was the actual bookings here maybe compared to any prior period?

That's helpful. Thank you and and then well or I guess for both of you. I mean, just you you commented on bookings I think you said, you're Super happy very happy with the sales execution again could you put a finer point on it I mean did they you know.

I'm, assuming that means the they beat you know the.

Bookings range of expectations of what you're looking for in the quarter, but I just dialed in a little more how how good was actual bookings here, maybe compared to any prior period or something.

Speaker 2: Well, as Ashley mentioned, they did really well in all the different geographies. We've seen just, I mean, look, what I'm pleased about is a little bit more higher level than that. I mean, you know, we said we would accelerate revenue growth and we're on track to doing that. And that wasn't a given. It was our expectation based on strong execution plans for that team.

Well, it's actually mentioned they did really well in all the different geographies. We've seen just that I mean, what I'm pleased about is a little bit more high level on that I mean, we said we would accelerate.

Revenue growth and we're on track to doing that and that wasn't a given it was our expectation based on strong execution plans for that team.

Speaker 2: Again, I just feel that that team, not just the sales reps that are out in the field performing well, but we've built up the machine to do those transactions really well at the back end, built up customer support and other things so that our MPS scores are improving, our customer success is just doing really well. And so I feel very good overall about the quality of that team. And obviously, that has resulted in us executing against this plan and, you know,

Again.

I just feel that those that came in not just the sales reps that are out in the field is performing well, but we built up the machine to do those transactions really what the backend fill up customer support and other things so that M.

M. P S scores are improving.

Customer success is just doing really well and so we just feel very I feel very good overall about the quality of that team and obviously that has resulted in us executing against this plan and you know.

Speaker 2: The words on track, you know, are really resonating, right? I mean, it's exactly what we said we'd be doing. And now, as a result, we can tighten up the four-year range, as Ashley was just commenting on.

That was on track.

Really resonating right I mean, it's exactly what we said we'd be doing.

And now as a result, we can tighten up the full year range and as actually he was just commenting on.

Speaker 5: Yep. Okay. And then last for me, just on the EEO sale, to your point, you're sharing firm commitments. Others have chosen to share a broader, more aspirational number, I guess. But if you think in that direction, you've given us the firm commit, but what are the paths to expanding it beyond the firm commits? I mean, I'm just wondering how much of a stretch it is to see that thing get larger, even meaningfully larger over time.

Yep, Okay, and then last for me just on the on the <unk> sale to your point, you're sharing firm commitments others have chosen to share a broader.

The more aspirational number I guess, but as you if you if you're thinking that direction you you've given us the firm commit but what are the paths to expanding it beyond the firm commits I mean, I'm just wondering what the yeah.

How much of a stretch it is to see that thing get larger even meaningfully larger over time.

Speaker 2: Well, it's a great question. There's quite a lot of flexibility the NRO has into that contract vehicle to expand. So they can add packages and different products. They can execute change orders, exercise new options, including extending the deal for up to a period of total period of 10 years. I mean, what I see is most exciting about this award is

Well, it's a great question I mean, we do have there are.

There's quite a lot of flexibility.

<unk> has into that contract vehicle to expand so they can add packages in different products. They can execute change orders ex <unk>.

<unk>, new options, including extending that deal for after a period of total period of 10 years I mean, what what what I see is most exciting about this award is.

Speaker 2: It's really how the NROs embraced leveraging planets' capabilities pretty much as they are. So they're buying our capabilities as they are.

It's really how the animas embraced leveraging planet's capabilities pretty much as they are so that buying capabilities as they are and and it is our three main capabilities. The sky sat rapid revisit that and the daily scan and the archive access and and and those three things are all unique.

Speaker 2: And it's our three main capabilities, the SkyStat, Rapid Revisit, the Daily Scan, and the Archive Access.

I mean for the <unk> and so the sky that provides more vapid revisit than any other system. Our satellite system that daily scan is completely unique in scanning and that is a new capability for them finding new threats around the corner. The archive of Nabors, this sort of forensic understanding and going back as a time machine to understand threats and how they evolve.

And so really what theyre buying component is really quite differentiated and unique in the fact that they're buying at such a scale and with such a commitment is really really pleasing to Austin and over all the future options that I was just talking about and how they can add on just confident based on this that that as we develop new capabilities.

Speaker 2: uh... based on that that as we develop new capabilities the government will buy them

The government will buy them.

Speaker 2: Okay, thank you. Our next question is from Caleb Henry with Quility Analytics. Thanks. Hi, guys. A question, or just a straightforward question that I guess people haven't seemed to want to ask. What is the maximum possible value for the 10 years? Yeah, we're in the business of reporting firm commitments here, so that's what we're providing. Obviously, I can't speak...

Okay. Thank you.

Yeah.

Speaker 1: Our next question is from Caleb Henry with Quility Analytics.

Our next question is from Caleb Henry with Quilty analytics.

Thanks, Hi, guys.

Speaker 12: Thanks. Hi, guys. Question, or just a straightforward question that I guess people haven't seemed to want to ask. What is the total value if—what is the maximum possible value for the ten years?

Question.

Straightforward question.

If people haven't seem to want to ask.

What is the total value it.

What is the maximum possible value for 10 years.

Speaker 2: Yeah, we're in the business of reporting firm commitments here, so that's what we're providing. Obviously, I can't speak to what other companies and their approaches on this, but I suspect it probably relates to the fact and the feature that we've explained about Planet is that we are a diversified business and not dependent on any one vertical market, let alone one contract. And so we think the right thing to do is provide the firm commitments, and that's what we're doing here as we would for any other business.

Yeah, we were in the business of reporting firm commitments here. So that's that's what we're providing and obviously I can't speak to what other companies in their approaches on this but but I suspect it probably relates to the fact in the feature that we've explained about planet is that we have a diversified business and not dependent on any one vertical market, let alone one contract and so.

We think the right thing to do is provide the firm commitments and that's what we're doing has we would for any other business.

Yeah.

Speaker 12: OK, I figured I would ask. So your presentation has D&I as 30% of revenue in the quarter. I'm just wondering if you could share, like, by the end of this year, what is that going to look like as EOCL starts rolling in? I guess, will it look like more than half of Planet's revenue by then?

Okay figured I would ask that so your presentation has DNI as 30% of revenue in the quarter.

Just wondering if you could share like by the end of this year, what is that going to look like F. E. N. C. L starts rolling in I guess will you will look like more than half of planets revenue by then.

Speaker 2: No, no. I mean, just roughly speaking, we feel that the overall numbers won't change that much, they will change a bit quarter to quarter, but we're not expecting it to be changing macroscopically from the rough ideas that we gave you before, which is we're roughly half commercial, roughly half government, and the government is split roughly evenly between civil and defense and intelligence. They may change a little bit from time to time. But I mean, we don't expect over the long arc of them to change materially from that. I don't know if you've got anything to add to that, actually.

No no I mean, just roughly speaking we feel that the overall numbers won't change that much they will change a bit Dakota Dakota, but we're not expecting it to be changing macroscopically from the rough ideas that we gave you before which is roughly half commercial roughly half government and the government has split.

Roughly evenly between civil and defense and intelligence they may change a little bit from time to time, but I mean, we don't expect over the long answer them to change materially from that and then if you've got anything to add to that actually.

Speaker 3: No, I think that's right, and in the near term, we're obviously seeing a lot of demand, not just from the escale contract, but from other government customers with the situations going on around the world.

No no I think that's right.

In the near term, we're obviously seeing a lot of demand and not just for Nashville contract that some other government contract customers with the situations going on around the world.

Speaker 3: but also a lot of demand on the civil government side. But concurrent with all of that is a lot of expansion within agriculture. We talked last quarter about some of the new business that we're seeing in finance and insurance. So the expectation is over the long term, the diversification of the business will only increase.

But also a lot of demand on the civil government side.

Concurrent with all of that is is a lot of expansion with in agriculture, and we talked last quarter about some of the new business that we're seeing in finance and insurance. So the expectation is over the over the long term the diversification of the business will only increase.

Yeah.

Speaker 12: Okay. Thank you. Can you give an update on the carbon mapper program? I think there's supposed to be two satellites that launch next year. Is that still the plan and are there plans still for a larger system there?

Okay. Thank you.

Can you give an update on the carbon Mapper program I think they're supposed to be two satellites that launch next.

Next year is is that still the plan and are there plans still for a larger system there.

Speaker 2: Yeah, that's a great question and we're very excited by our Carbon Mapper program. It's going well. It's early days, obviously, in the program and developing those capabilities alongside NASA JPL and the consortium of NGOs that are working with us on that program. It's really a quite unique program. It's a first of a kind in doing hyperspectral imagery at that scale and sensitivity. We talked about the main goals being to do with...

Yeah.

Great question, and we're very excited about our carbon map a program, it's going well. It's early days, obviously in the program and developing those capabilities alongside J P. At NASA JPL and the consortium of Ngos that working with US on that program. It's really a quite unique program as the first of a kind and doing hyper spectral and imagery.

At that scale and sensitivity.

We talked about the main goal is being to do at detecting methane and C. O two points sole submitters. It has a number of other benefits or so in the area of biodiversity G tracking the as we move to a sustainable economy as the secular trend.

Speaker 2: detecting methane and CO2 point source emitters. It has a number of other benefits also in the area of biodiversity tracking. Look, as we move to a sustainable economy as the secular trend that we've talked about.

We you know we've talked about is also tailwind there.

Speaker 2: of the tailwind there. The world needs better and better measurement on these things and this is just exactly what we're trying to provide both for civil government, for the energy sector and so on. So, yeah, very excited by that program and yes, it's on track to still launch the first two satellites next year.

The world needs, better and better measurement and on these things and this is just exactly what we're trying to provide them both with civil government for the energy sector and so on so very excited about that program and yes. It's it's on track to still launch are the first two satellites next year.

Okay.

Speaker 12: Okay. Just two more questions for me. The first is about Pelican. So I thought they're supposed to have crosslinks on board. The FCC application indicated that they would be mainly for tasking, but it also kind of differed from what I read in the press. I think the FCC filing was for C-band crosslinks.

Okay.

Just two more questions for me. The first is the bell pelikan unless they felt they were supposed to have cross links onboard.

The FCC application indicated that they would be mainly for tasking.

But it also kind of different from what I've read in the press I think the FCC filing was for C band Cross links press that K, a with the possible route to optical so can you kind of clarify which one it is or at least what it'll be initially and if it's just for tasking or if you envision that being used for more kind of data transfer.

Speaker 12: Press said KA with possible route to optical. So can you kind of clarify which one it is, or at least what it'll be initially, and if it's just for tasking, or if you envision that being used for more data transfer and various purposes?

For various purposes.

Speaker 2: We do envision it being used for both purposes. We haven't gone into great detail into that as yet. We will be talking to that more in time as those details become firm. But we are adding cross-links to reduce latency overall, and that's a very exciting development.

We do envision it to be being used in it for both of her purposes, we haven't gone into great detail on that as yet and we will be talking to that more in time as those details become fun, but but it is a.

We all have a adding cost lengths to reduce latency over all and that's very exciting development.

Speaker 12: Okay, and then my last one. So, the U.S. government is becoming slightly more approving of 10-centimeter resolution imagery. Does Planet have any plans to go lower in terms of resolution beyond the 30 centimeters afforded by Pelican?

Okay and then my last one so the U S government is becoming slightly more approving of 10 centimeter resolution imagery.

We'll planet.

Don't have any plans to go lower in terms of resolution beyond the 30 centimeters afforded by Pelican.

Speaker 2: Look, we're going to constantly improve in all of the dimensions of resolution, which is spatial resolution, temporal resolution, and spectral resolution. And so yeah, I would anticipate that in the long arc, obviously, we're just...

And we're going to constantly improving all of the dimensions of a resolution, which is spatial resolution a temporal resolution and spectral resolution and so yeah. We are I would anticipate that in the long arc, obviously with just building. This next center is 30 centimeter system. So we're focused on that in terms of the resolutions.

On the spectrum resolution that I, just talked about carbon mappa and how we're going out to a hyper spectral system. That's a 400 over 400 spectral bands system and on the temporal resolution, we constantly increase with Pelican also heading towards that.

Speaker 2: On the temporal resolution, we constantly increase with Pelican also heading towards as I mentioned, 12 revisits in any place on the earth and up to 30 revisits in mid-latitudes which is an unprecedented revisit rate. My point is that we are constantly increasing all three axes of that. At the same time and just as importantly, we've really got our biggest focus now on the software side to add capabilities to extract out information from these services, merge them and fuse them and extract out.

As I mentioned 12 revisit than any place on the Earth and up to 30 revisits in mid latitudes, which is an unprecedented revisit rate. So my point is that we are constantly increasing over three axes of that at the same time and just as importantly, we're constantly.

Speaker 2: At the same time, and just as importantly, we've really got our biggest focus now on the software side to add capabilities to extract out information from these services, merge them and fuse them and extract that information. So that's just as important a focus.

We really got our biggest focus now on the software side to add capabilities to add to extract out information from these services merge them infused thurman and extract that information so.

That's just as important our focus.

Speaker 2: But, yeah, to answer your question, yes, ultimately we will continue to go up in resolution.

But.

Yeah to answer your question, Yes, ultimately, we will continue to go up and resolution.

Okay. That's all for me thank you very much.

Okay. Okay.

Okay.

Yeah.

Yeah.

There are no further questions waiting at this time, so I'll pass the call back over to the management team for closing remarks.

Speaker 1: There are no further questions waiting at this time, so I'll pass the call back over to the management team for closing remarks.

Speaker 2: Thanks operator and so maybe I can just end with a few three key points that we're conveying here I feel like firstly we've had very strong execution. I'm very pleased with the Q1 results and especially the accelerated growth of the top line, which is really exactly on track

Thanks, operator, and so maybe I can just end with.

A few are three key points that we conveying here I feel like firstly, we've had very strong execution I'm very pleased with the Q1 results and especially the accelerated growth of the top line, which is really exactly on track.

Speaker 2: Secondly, the Landmark Award, which, you know, underscores this and...

Secondly, the landmark award, which underscores this and we're not only thrilled with that award and by the way. It starts tomorrow. So very excited to start executing for the customer the and really strengthens our visibility and then the third point I'd leave you with is that are we.

Speaker 2: We're not only thrilled with that award, and by the way, it starts tomorrow, so we're very excited to start executing for the customer there.

Speaker 2: and really strengthens our visibility and then the third point I'd leave you with is that

Speaker 2: we're going to be seeing growing demand across all the vertical markets. I mean, I mentioned that in agriculture, I mentioned that in defense intelligence, civil government, and this is sort of...

We're growing and we're seeing growing demand across all the vertical market I mean, I mentioned that in agriculture, I mentioned that in defense intelligence Civil government and this is sort of bolstered by the secular trends that we've been speaking about for a number of quarters now so drove those proud of the team.

Speaker 2: bolstered by the secular trends that we've been speaking about for a number of quarters now. So thrilled with the results, proud of the team that have made it happen. And so, yeah, thanks for tuning in. See you next time.

Have made it happen and so yeah, thanks, Julian and see you next time.

That concludes the planet Labs, PBC first quarter of fiscal 2023 earnings call. Thank you for your participation you may now disconnect your lines.

Speaker 1: That concludes the Planet Labs PBC first quarter of fiscal 2023 earnings call. Thank you for your participation. You may now disconnect your line.

Okay.

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